The article, Hong Kong is facilitating big tech’s banking push, covers how many Chinese fintech companies are now being awarded virtual banking licenses in Hong Kong.
One of those companies is Ant SME Services which is the sister company of the leading Chinese mobile payment company Alipay. Both companies are subsidiaries of Ant Financial Services Group, the world’s highest-valued fintech company with a valuation of about $150bn.
Virtual banks in Hong Kong are founded to ‘facilitate financial innovation, enhance the customer experience, and promote financial inclusion.’
It is pointed out in the article that Hong Kong can also act as a gateway for big tech companies. This is both true for Chinese companies looking to expand internationally or for western companies that have aspirations in the Chinese mainland.
This is both due Hong Kong’s proximity to China and its separate status. The article also cites studies which reveal that consumers are quite open to adopting financial products and services from big tech firms.
Or as Bragi Fjalldal states out in the article: “Alipay’s growing presence across Europe serving Chinese tourists is a concern for banks in the region.
Alipay is building an infrastructure and relationships that could pave the way for a broader rollout to European consumers in the coming years”
Business Insider is a business news site with deep financial, media, tech, and other industry verticals. Launched in 2007, the US site is now the largest business news site on the web. The site has 7 international editions of Business Insider — in Australia, India, Malaysia, Indonesia, Singapore, China, and the UK — reaching another 5 million users each month.